This module allows you to analyze existing cross correlation between DOW and PowerShares SP 500 Quality ETF. You can compare the effects of market volatilities on DOW and PowerShares SP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DOW with a short position of PowerShares SP. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and PowerShares SP.
|Time Horizon||30 Days Login to change|
DOW vs. PowerShares SP 500 Quality ETF
Given the investment horizon of 30 days, DOW is expected to generate 1.21 times more return on investment than PowerShares SP. However, DOW is 1.21 times more volatile than PowerShares SP 500 Quality ETF. It trades about -0.04 of its potential returns per unit of risk. PowerShares SP 500 Quality ETF is currently generating about -0.11 per unit of risk. If you would invest 2,530,999 in DOW on March 25, 2018 and sell it today you would lose (86,130) from holding DOW or give up 3.4% of portfolio value over 30 days.